Temporary refugee protection and labor-market outcomes

Abstract

We study a Danish reform in 2002 that lowered the ex-ante probability of refugees receiving permanent residency by prolonging the period before they were eligible to apply for such residency. Adherence to the new rules was determined by the date of the asylum application, and the reform was implemented retroactively. Using registry-based micro data, we study the effects on labor-market outcomes and investments in education. While proponents of temporary protection regimes argue that stronger incentives to qualify for residency based on labor-market attachment will speed up the labor-market integration, we find no evidence of positive effects on labor-market outcomes.